March 25 (Reuters) - Futures tied to Canada's stock index climbed on Wednesday amid a broader relief rally across global markets as investors latched onto signs of progress in the Middle East conflict.
June futures on the S&P/TSX composite index were up 1.2% as of 06:18 a.m. ET (1018 GMT).
Global stocks rose and oil fell on reports the U.S. is seeking a month-long ceasefire in the war with Iran and had sent a 15-point plan to Tehran, raising hopes of a breakthrough that could help restore oil supplies from the Gulf.
Although the Iranian military denied holding any negotiations with Washington to end the war, the prospect of a pause in hostilities was enough to move markets.
In commodities, gold prices gained on a softer dollar, while oil prices retreated on hopes of a ceasefire that could help normalize flows from the vital Strait of Hormuz, a critical gateway for about a fifth of global energy supplies.
A pullback in energy prices could offer some relief to central banks, which have warned that geopolitical tensions may revive inflationary pressures and complicate the outlook for interest rates.
Traders expect the Bank of Canada to hold rates at its April meeting, with two hikes priced in by year-end, according to LSEG data.
The S&P/TSX Composite index recorded its biggest single-day advance in five weeks on Monday, though it remains 7.5% off its record closing high of March 2, when elevated oil prices provided a significant tailwind.
Eyes will be on Dollarama (DOL.TO), after brokerage CIBC upgraded the retailer to "outperformer" from "neutral," while reducing its target price.
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Reporting by Rashika Singh in Bengaluru; Editing by Diti Pujara
